Research Center
Khang Dien House JSC (HOSE: KDH) | BUY - 1Y Upside +25.2%
Company OverviewKhang Dien House Investment and Trading JSC was established in 2001. In 2007, the company successfully IPOed and has been listed on the Ho Chi Minh Stock Exchange (HoSE) since 2010. The company primarily operates in residential real estate development and investment mostly in HCMC and is recently expanding with two industrial real estate projects. KDH started with low-rise residential products including townhouses and villas. Since 2017, Khang Dien (KDH) has also ventured into mid-range high-rise residential projects.Financial PerformanceKhang Dien undoubtedly has the healthiest balance sheet among the top real estate developers in Vietnam. As of the end of Q3/2024, Khang Dien’s total assets amounted to VND 29,855 billion, reflecting a 20.7% increase, with inventory remaining the largest asset category, comprising 75.2% of total assets.Equity reached VND 18,883 billion end of Q3 2024 while total liabilities were VND 12,722 billion. KDH debt to equity ratio is less than 0.7, which shows the company's proactive approach to managing capital structure as part of its ongoing growth strategy. Valuation and RecommendationKhang Dien is our top pick in the real estate sector. Our investment thesis for Khang Dien include: Strong market position and reputable real estate developer; strong and healthy balance sheet; large, clean land bank, which is sufficient for the next 5-10 years development; positive real estate market trends and economic tailwinds generate strong demand while HCMC new supply is with very limited; and strong, prudent management team. Based on our forecast of revenue from the company's ongoing projects, SBBS recommends a BUY on KDH share with a target price over the next 12 months at VND 42,000/share, an upside potential of 25.2% from current price. |
- KDH